Abstract:Moratoria provisions for the outer continental shelf (OCS), enacted as part of the Department of
the Interior appropriations over 26 years, prohibited federal spending on oil and gas development
in certain locations and for certain activities. These annual congressional moratoria expired on
September 30, 2008. While the expiration of the legislative restrictions does not make leasing and
drilling permissible in all offshore areas, it is a significant development in conjunction with other
changes in offshore leasing activity. Change in moratoria policy signals a shift that may affect
other OCS policies as well.

The chief policy goal in not continuing annual moratoria beyond FY2008 was to increase
domestic OCS energy production. Also influential were policies to diversify domestic energy
production, including by launching renewable energy programs in the OCS, and the availability
of new technology that would allow OCS activity in deeper waters beyond clear jurisdictional
boundaries. These developments, taken together, reflect a transformative change in OCS policy
alternatives. Their impact during periods of volatility in oil markets and in an exceptionally weak
economy focuses congressional attention on federal priorities for OCS development.

In the past, Congress has addressed OCS oil and gas development by balancing numerous factors,
including economic feasibility, environmental risk, technology, and ocean sovereignty.
Disagreements tend to arise in each of these four issue areas between those in favor of offshore
oil and gas development and those opposed. Positions are sharply divided on national and coastal
state goals for OCS activities in former moratorium areas, and in areas in the Gulf of Mexico and
the Arctic where prospective drilling activities or renewable energy projects are permissible.

Around the world, offshore activities are changing, as is reflected in international offshore policy
disagreements that are similar to domestic policy disagreements. Economic opportunity and
technological advances are driving the global search for energy sources in deeper ocean waters.
These activities may clash with national or international environmental policies. Within the
framework of the United Nations Convention on the Law of the Sea (UNCLOS), a number of
countries are establishing parameters for offshore activities, including preparing claims for
extended continental shelf areas. Although the United States has not ratified UNCLOS, U.S.
efforts are underway to address extended continental shelf areas in a manner not inconsistent with
the UNCLOS process.

The expiration of congressional moratoria is part of a series of changes in domestic and
international OCS energy development policy. Moratorium policies have impacted federal-state
coordination on economic and environmental concerns. As a result of changes in these policies,
federal-state coordination and nation-to-nation coordination may emerge as issues for Congress
as it addresses economic and environmental challenges in the OCS.